March 24, 2016 | Canada’s New Bail-In Proposal

Martin Armstrong

Martin Arthur Armstrong is the former chairman of Princeton Economics International Ltd. He is best known for his economic predictions based on the Economic Confidence Model, which he developed.

Socialism is dead. The new proposal for failed banks moving forward will be for the bank to seize the money of its depositors and issue them stock in its place. This is a “bail-in” that pretends to be more compassionate. This is the new proposal circulating around in Canada championed by Justin Trudeau.

2 Comments

If I understand it right, in most countries now, the money in ‘your bank account’ is NOT your money. The fine print says that you are lending your money to the bank, not depositing it in your account. That means it becomes the bank’s money and you become a creditor of the bank. But you are subordinate to other creditors. So, for example, the bank will pay money it owes on derivative bets that went wrong to the counterparty (another bank) before it will pay anything to retail creditors aka account holders, if push comes to shove.